Threats to the global economy do not come much bigger than a trade war. Tariffs helped turn a stock market crisis and recession into the Great Depression back in the 1930s, scarring the world economy for decades to come.
The key lesson for the best part of the past century was that prosperity flows when borders are open to trade.
So far the trade spat between the US and China has not tipped the world into crisis. That is not guaranteed to continue: IMF chief Christine Lagarde this week warned it is “a threat for the global economy.”
The trade war started at a time of strong economic growth, and central banks around the world have responded with economic stimulus measures, dampening the conflict’s impact.
However, global growth has weakened since then and the current fragile stability could let much of the world avoid a recession, if there are no more shocks.
Yet that could change this week. After months of negotiations, the US looks set to raise more tariffs on Chinese imports.
Chinese President Xi Jinping is wrapping up his overseas jaunt of the year, visiting Europe on a mission to strengthen Beijing’s ties to the region.
As the Brexit process treads water, we’ve decided to stand back and ask some poignant questions: does Brexit matter in the big scheme of things? Is it virtually irrelevant beside the forces that are shaping our changing world?
Venezuela’s opposition leader Juan Guaido said in an interview that the expulsion of the German ambassador by Caracas was a threat against Germany, Der Spiegel magazine reported on Thursday.
“This action represents a threat against Germany,” Guaido was quoted as saying on Thursday.
German ambassador Daniel Kriener was expelled two days after he and diplomats from other embassies welcomed home Guaido at Caracas airport.
Microsoft Corp on Wednesday said it had discovered hacking targeting democratic institutions, think tanks and non-profit organizations in Europe and plans to offer a cyber security service to several countries to close security gaps.
The attacks occurred between September and December 2018, targeting employees of the German Council on Foreign Relations and European offices of The Aspen Institute and The German Marshall Fund, the company said here in a blog post.
Microsoft said the activity, which was found through the company’s Threat Intelligence Center and Digital Crimes Unit, targeted 104 employee accounts in Belgium, France, Germany, Poland, Romania, and Serbia.